Cable TV’s decision to pull plug on pay-TV operations a wake-up call for Hong Kong broadcasters, analysts say
- Operator will have to create own niche in free-to-air market, competing against TVB and Viu TV, which has cashed in on boy band Mirror’s star power
- Experts point to potential in Greater Bay Area, but Bruce Lui, senior lecturer in journalism at Baptist University, says move ‘very difficult’ financially
Hong Kong Cable Television’s decision to pull the plug on its pay-TV services casts a shadow over the sector’s future and reminds industry players their survival is at stake if they fail to churn out unique local productions that can appeal to a wider audience, analysts have said.
The operator, known as Cable TV, surrendered its licence to the government six years ahead of schedule amid mounting financial losses and said it planned to focus on the development of free-to-air services. The move leaves the city with only one pay-TV station: Now TV.
The company will compete in the free-to-air market with Television Broadcasts (TVB) and ViuTV, owned by billionaire Richard Li Tzar-kai, the son of tycoon Li Ka-shing and also owner of Now TV.
“The group will continue to strengthen free TV content offered to audiences, and aim to seek suitable opportunities for international cooperation, as well as commencing production of a new television series,” it said on Tuesday.
Several analysts said the sudden move reflected the inevitable downfall of the local paid-TV market amid a rising number of younger people shifting to global streaming services such as Netflix and Disney, as well as other online media channels.
They warned that Cable TV would have to create its own niche in the free-to-air market, while competing against loss-making TVB and the budding ViuTV which has cashed in on the star power of local boy band Mirror.
